Infrastructure provides services, utilities and linkages, which allow cities to function and indeed present lifelines for business and community. Infrastructure networks are often large, complex and interdependent systems, meaning that failure in one network can compromise the entire system.

A good example of how PPPs can reduce risks to infrastructure networks was highlighted in the 4 September 2010 and 22 February 2011 earthquakes near Christchurch, New Zealand, which caused damage of US$4 billion and US$12 billion, respectively. The Christchurch Engineering Lifelines Study (Christchurch Engineering Lifelines Group 1997) undertaken in the 1990s, addressed a range of hazards including earthquakes, snow and wind-storms, flooding and tsunamis. A key feature of the project was the wide involvement of engineers and managers from utility organisations, including local authorities, and private and public companies. After the study, Christchurch’s utility companies built disaster risk management into their daily business practices. Interorganisational collaboration was facilitated and formalized through the Canterbury Lifeline Utilities Group.

These efforts paid off when the earthquakes struck. Thanks to investments in reinforcement before the earthquakes, the Port of Littleton was able to resume operations within days—despite heavy damages to the port and major losses owing to demolished commercial buildings. Telecommunications buildings that had also been reinforced were able to continue to operate. Most bridges had been retrofitted by Christchurch City Council and the New Zealand Transport Agency and successfully survived the quakes; and US$6 million of investment in seismic strengthening work by Orion, the local electricity distribution company, saved more than US$65 million in direct losses.

In contrast, residential losses were high owing to Christchurch’s history of land-use decisions, which allowed development on land susceptible to liquefaction, lateral-spreading and subsidence in the event of earthquakes.